Gold traded in the narrow range in Europe on Wednesday, caught between the contradictory pressures of strengthening dollar and expectations for inflation, reports Economic Times. The firmer dollar helped to limit the gold price. The dollar gained as hopes for a recovery in the global economy faded after weak economic data from the United States, boosting interest in the currency as a haven. A stronger dollar tends to weigh on gold, which is often bought as an alternative investment to the US currency. Traders waited for direction from US inflation data due later in the session, as well as industrial production figures. Gold is typically bought as a hedge against rising prices. Spot gold was bid at USD 890.10 an ounce against USD 888.85 late in New York on Tuesday. Among other precious metals, spot platinum was bid at USD 1,220.50 an ounce against USD 1,204 late on Tuesday, while spot palladium was bid at USD 235 an ounce against USD 230. Spot silver was bid at USD 12.69 an ounce against USD12.72.

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